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This is an archive article published on July 1, 2012

Army canteen racket busted,2 arrested

The CBI on Saturday busted a corruption racket involving officials of the Ministry of Defences Canteen Stores Department and a private company.

The CBI on Saturday busted a corruption racket involving officials of the Ministry of Defences Canteen Stores Department CSD and a private company.

A Joint General Manager of CSD was caught red-handed while accepting a bribe of Rs. 1.25 lakh from the director of the company. Both were arrested.

ACB officials said CSD,which is headquartered in Mumbai and provides consumer goods to current and retired army personnel at uniform and concessional rates through 3825 canteens throughout the country,was involved in unauthorised marketing of various companies including a company called Sankalp Consumers Products Limited.

Officials said CSD was learnt to have favoured Sankalp at various stages such as introduction of items,price revision,budget allocation and demand creation among others. CSD officials,on the other hand,would receive illegal gratification for favours done,through Sankalp director Milind Govilkar.

Joint General Manager of CSD Bikas Ranjan Daschaudhary was caught accepting the bribe at his Napean Sea road residence from Govilkar. Incriminating documents,huge sums of cash and jewellery were found from the homes and offices of the accused. Searches were conducted in 20 locations across the country.

 

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